Seagate Technology (STX-Q)

Memory chips are bottoming now and management just stood behind its 4.8% dividend yield.

Technically, this has rolled over and has a lot of work to do. The company has continued to have earnings beat, which is always a good thing. However, they are flat lining. Dividend yield of almost 7%.

This is in the business of making hard drives, and can be quite a volatile stock. The pricing for disk drives and some of the components they make can be very, very volatile. That can lead to volatility in earnings.

(Market Call Minute.) He likes the stock. Has very strong valuations. 26X PE. Good yield.

Hard drives for PCs. At $26-$26.50, this is right on very strong technical support. The upside potential (FMV) is 100% higher than where it is right now. However, earnings forecasts are in full retreat. Stock is cheap, but fundamentals are not supporting it. If it does not hold at the $26-$26.25 area, don’t continue to Hold, as it could drop to $18, and maybe as low as $15. It is kind of a value trap.

It is always cheap. It has had a challenging growth outlook because of the lack of growth in the PC market. Storage is moving to solid state and away from their technology.

Likes what is going on in technology and in their space in general with video. The “over the top guys” are forcing cable and telco companies to really go head to head. This company is like an arms dealer to the war that is about to take place. Technology will likely drive who is going to win that adoption race.